Russian Financial Sector Update

Bank of Russia FINANCIAL SECTOR OVERVIEW The Central Bank of the Russian Federation SECURITIES MARKET (1) Russia's financial market has been aligned with best international practices 32 Crisis-proven market infrastructure • • • MICEX and RTS merged into the Moscow Exchange Establishment of a Central Securities Depository and unification of CCP across all asset classes T+2 settlement on equities, T+1 on OFZS, T+0 on corporate bonds Simplified market access • . . Euroclear and Clearstream settlement for equities and bonds; Unified collateral pool for equities, bonds and FX markets International clearing system membership; Direct access to FX trading for large corporates Local investor base development (individual investment account system, tax incentives, etc.) [D] Upgraded corporate governance Creation of a two-tier Quotation List within the stock exchange listing Strong criteria for inclusion in the top-tier Quotation list Streamlined dividend rules for SOES Corporate standards aligned with best international practices • ☑ Increased transparency • • Mandatory audited IFRS for all public companies Strengthened regulation to prevent market manipulation and insider trading • Improved disclosure practices • Report on Corporate Governance Code • compliance in the annual report Requirement to have a written description of dividend policy for the top-tier Quotation list Establishing of a Listing Committee at MOEX • Development of basic standards for professional market participants activities

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